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Former AIG CEO Greenberg to Pay $15 Million to SEC

Source: CNBC

Posted on 06 Aug 2009

Former AIG CEO Hank Greenberg has agreed to pay the SEC $15 million to settle past accounting issues, according to the "Wall Street Journal". Former AIG CFO Howard Smith will also reportedly pay $1.5 million to the SEC in the settlement.

An official announcement by the SEC on the settlement is expected later today.

Greenberg had received a subpoena from the SEC in July of 2007 on a continuing investigation into what role, if any, he played in alleged accounting improprieties at his old firm, American International Group, which led to a $3.6 billion earnings restatement, a $1.6 billion settlement between AIG and a host of regulators, and Greenberg’s eventually being forced from his job as chairman and CEO.

Greenberg had steadfastly denied that he has done anything wrong.

AIG had sued Greenberg as part of shareholder litigation over the accounting restatement, and officials there have made no secret that they thought the SEC was dragging its feet in bringing a case against Greenberg.